MBA 1st Year

2019-20

Introduction to Operations Management

BS-DSC-612

Fall 2019

Dr. Anirban Ganguly

Email: aganguly@jgu.edu.in

INTRODUCTION TO THE COURSE

This course provides students with concepts, techniques and tools to design, analyze, and improve operational
capabilities of an organization, and apply them to a broad range of application domains and industries. It emphasizes
the effect of uncertainty in decision-making, as well as the relationship between high-level financial objectives and
operational capabilities.

COURSE OBJECTIVES

What should be your learning at the end of this course? You should be able to achieve the following (not more than
five objectives by using SMART (Specific, Measurable, Achievable, Relevant and Time-Oriented) Principles.

 Analyze business operations using appropriate performance measures, such as flow time, throughput rate
and capacity.
 Propose business solutions for operations improvement and process design.
 Identify inefficiency and ineffectiveness in business operations and propose adequate changes or redesigns
to improve the process.
 Understand the theory and implementations of quality control activities for different industries.
 Understand the concept of process control / quality control in organizations.
 Understand the concept of inventory management and waiting line theory.
 Evaluate the importance of demand forecasting in operations.
LEARNING GOALS

In addition to the specific course related objectives, this course is designed to achieve the following learning goals

1. Critical and Integrative thinking: Each student will be able to identify key issues in Operations & Supply
Chain Management, develop a perspective that is supported with relevant information and integrative
thinking, to draw and assess conclusions. This learning goal will be measured through assignments and
submissions
2. Awareness of Global Issues affecting Operations & Supply Chain Management: Each student will be able to
identify key relevant global issues and be able to analyze the impact of the global environment on
Operations & Supply Chain Management, as compared with domestic market related management issues.
This learning goal will be assessed through lectures and class discussion on a plethora of aspects of
managing operations and supply chain, both from the global as well as the local perspective. Additionally,
the students will be required to look into a real life problem on Operations & Supply Chain Management and
determine a solution of the same, which will comprise a part of team evaluation.
3. Interpersonal Awareness and Working in Teams: Each student shall demonstrate an ability to work
effectively in a team, exhibiting behavior that reflects an understanding of the importance of individual roles
and tasks and the ability to manage conflict and compromise so that team goals are achieved. (For
example, the team based e presentation in the class will be a major component for measurement of this
learning goal).
4. Effective Presentation Skill: Each student shall be able to communicate verbally in an organized, clear,
persuasive manner and be a responsive listener. (For example, class participation and project presentation
will be used to assess effective oral communication.

TEACHING METHOD

The course will consist of lectures, in-class discussions and case analysis. The backbone of this course will be in-
class discussions, which will aid in tying up the concepts taught in the class with examples from the practical world.
Therefore, it is expected that the onus of learning will be with the student and the instructor will act as a facilitator.
Furthermore, the team project is expected to facilitate the students to explore the role of operations management
from the lens of the practical world, in addition to teaching them valuable attributes of teamwork. The key to learning
this way is to see many examples and many situations and learning inductively from the different experiences of
students.

TEAMS AND TEAM WORK

You will be informed about your team members and you should prepare cases for class discussion. You will have no
more than 4 members in your team. The team members for the group presentation will be chosen either by the
instructor of by the JGBS executive office. The final grade may be adjusted downward (up to a maximum of 5 %) if a
person on a team has not pulled his/her weight. A team member who is absent for a particular presentation will
automatically receive a zero grade for that presentation..

ATTENDANCE POLICY

Attendance to all the sessions is as per the university rules (minimum 75% excluding all leaves). The following
instances will also be treated as absence unless prior permission is taken

 Attending only part of the session, either entering or leaving during the break
 Arriving in class after the session is scheduled to begin
 Failing to display the name card

GRADING

The course grade will be determined on the basis of

Evaluation Weightage Nature Explanation

Item
Midterm 20% Individual There will be a midterm examination, carrying 20% of the total grade.
Class 10% Individual Continuous in nature and summed up over the entire duration of the
Participation course
Project Work 20% Group This will comprise of two presentations and a final report based on the
presentations. Further details regarding these will be discussed in the
class.
End Term 50% Individual Final examination, which will be closed notes / closed book in nature

PROJECT (TEAM BASED)

The purpose of the Analysis Project is to give students the opportunity to practice all of the skills taught in this class,
and to meld the results of those activities into a coherent and professional presentation and report that describes the
recommendations for managing operations in an organization. The specific project to be completed this semester will
be discussed in class. Detail about the requirements of this assignment and specifications for the final report will be
provided to the students, including a detailed requirement of the report as well as the presentation, and will be
discussed throughout the semester. Please note that it is intended that the materials created for the progress reports
will be included in the final paper. Finally, the students should maintain coherency between the two presentations and
the final report should be a cumulative output of the topics presented in both presentation 1 and 2.
DELIVERABLES

Each team will turn in a maximum ten page report (1.5 spaced, 12 point font, Arial), not including the references and
the exhibits) and submit it over email to aganguly@jgu.edu.in on or before the mutually decided date (session # 26,
in this case). This project report submissions should be in MS word format. Students are not permitted to copy from
websites and they will be penalized if found copying/lifting from the website (There will be a plagiarism check).
However they can quote the source and accession at the end of the text. Maximum permissible words will be 50
words in a sentence on continuous basis.

All word documents should be in standard report formats with required headings to make for easy reading. They
should be as per the above guidelines and on a A4 paper with 1-inch default margin. In general appendices and
tables do not count towards the page limit. Please use the tables and appendices in the report; otherwise the reader
would get the impression that there just there to add ‘weight’ to the report.

TEXT BOOK, COURSE PACKAGE AND OTHER READINGS

The required text book for the course is Operations Management, Author: William J Stevenson, 12th Edition, ISBN:
78-9-35-260547-7, McGraw-Hill India. Chapters from this book are assigned as required readings in the class
schedule below. I will assume that you have done those readings when you come to the class. The lectures will take
the book material as a starting point and probe deeper into the issues - it will not regurgitate the book material. If
something in the book is not clear to you, please don’t hesitate to ask.

Cases and any other reading material assigned for reading will be provided to you in a course pack and will be
uploaded in the e-learning platform.
CLASS SCHEDULE (Each session is of 90 minutes’ duration)

Session No. 01 Introduction to Operations Management

Objective of the session At the end of this session you will be able to:
• Define the terms operations management and supply chain
• Identify similarities and differences between production and service
operations
• Explain the importance of learning about operations management
• Identify the three major functional areas of organizations and explain how
they interrelate
• Explain the key aspects of operations management decision making
• Describe the current issues in business that impact operations management
• Explain the need to manage the supply chain
Readings Chapter 01
Readings None
Case Title and Number None
Pedagogy Lecture & class discussions

Session No. 02 Operational Strategies

Objective of the session At the end of this session you will be able to:
• List several ways that business organizations compete
• Name several reasons that business organizations fail
• Define the terms mission and strategy and explain why they are important
• Discuss and compare organization strategy and operations strategy, and
explain why it is important to link the two
• Describe and give examples of time-based strategies
• Define the term productivity and explain why it is important to organizations
and to countries
• Describe several factors that affect productivity
Readings Chapter 02
Readings None
Case Title/ Number “Home-Style Cookies” (page 67 of the textbook)
Pedagogy Lecture & class discussion

Session No. 03 Managing and Controlling Quality - I

Objective of the session At the end of this session you will be able to:
• Define the term quality as it relates to products and as it relates to services
• Identify the determinants of quality
• Explain the need for quality control
• Discuss the costs associated with quality
• Understand the concept of TQM
 • Give an overview of process improvement.
• Describe the six sigma methodology.
• Describe and use various quality tools.
Readings Chapters 09
Readings None
Case Title/ Number Chick-n-Gravy Dinner Line (page 405 of Stevenson)
Pedagogy Lecture, class discussions, case discussion & solved numerical examples in class

Session No. 04 Managing and Controlling Quality - II

Objective of the session At the end of this session you will be able to:
• Explain the need for quality control.
• Discuss the basic issues of inspection
• List and briefly explain the elements of the control process.
• Explain how control charts are used to monitor a process and the concepts
that underlie their use.
• Use and interpret control charts.
• Perform run tests to check for nonrandomness in process output.
• Assess process capability
Readings Chapter 10
Readings None
Case Title/ Number Toys Inc. (page 460 of Stevenson)
Pedagogy Lecture, class discussions, case discussion & solved numerical examples in class

Session No. 05 Strategic Capacity Planning - I

Objective of the session At the end of this session you will be able to:
• Explain the importance of capacity planning
• Describe ways of defining and measuring capacity
• Name several determinants of effective capacity
• Discuss the major considerations related to developing capacity alternatives
• Describe the steps that are used to resolve constraint issues
• Briefly describe approaches that are useful for evaluating capacity
alternatives
• Outline the steps in the decision process
• Describe and use techniques that apply to decision making under uncertainty
• Describe and use the expected-value approach
• Construct a decision tree and use it to analyze a problem
• Compute the expected value of perfect information
Readings Chapter 05
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions, solved numerical examples in class

Session No. 06 Strategic Capacity Planning - II

Objective of the session At the end of this session you will be able to:
• Explain the importance of capacity planning
 • Describe ways of defining and measuring capacity
• Name several determinants of effective capacity
• Discuss the major considerations related to developing capacity alternatives
• Describe the steps that are used to resolve constraint issues
• Briefly describe approaches that are useful for evaluating capacity
alternatives
• Outline the steps in the decision process
• Describe and use techniques that apply to decision making under uncertainty
• Describe and use the expected-value approach
• Construct a decision tree and use it to analyze a problem
• Compute the expected value of perfect information
Readings Chapter 05
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions, solved numerical examples in class

Session No. 07 Process Selection & Facility Layout - I

Objective of the session At the end of this session you will be able to:
• Explain the strategic importance of process selection and the influence it has
on the organization and its supply chain.
• Name the two main factors that influence process selection.
• Compare the four basic processing types.
• Explain the need for management of technology.
• List some reasons for redesign of layouts.
Readings Chapter 06
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions, solved numerical examples in class

Session No. 08 Process Selection & Facility Layout - II

Objective of the session At the end of this session you will be able to:
• Describe product layouts and their main advantages and disadvantages.
• LO6.7 Describe process layouts and their main advantages and
disadvantages.
• Solve simple line-balancing problems.
• Develop simple process layouts.
• Compute the expected value of perfect information
Readings Chapter 06
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions, solved numerical examples in class

Session No. 09 Location Planning and Analysis - I

Objective of the session At the end of this session you will be able to:
• Understand the nature of location decisions
 • Understand the concept of Global Locations
• Understand the procedures for making a location decision
• Evaluate location alternatives
Readings Chapter 08
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions & solved numerical examples in class

Session No. 10 Location Planning and Analysis - II

Objective of the session At the end of this session you will be able to:
• Understand the nature of location decisions
• Understand the concept of Global Locations
• Understand the procedures for making a location decision
• Evaluate location alternatives
Readings Chapter 08
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions & solved numerical examples in class

Session No. 11 Work Design & Measurement

Objective of the session At the end of this session you will be able to:
• Explain the importance of work design.
• Compare and contrast the two basic approaches to job design.
• Discuss the advantages and disadvantages of specialization.
• Compare the advantages and disadvantages of time-based and output-
based pay systems.
• Explain the purpose of methods analysis and describe how methods studies
are performed.
• Describe four commonly used techniques for motion study.
• Define a standard time.
• Describe and compare time study methods and perform calculations.
• Describe work sampling and perform calculations.
• Compare stopwatch time study and work sampling.
Readings Chapter 07
Readings None
Case Title/ Number None
Pedagogy Lecture & class discussions

Session No. 12 Inventory Management - I

Objective of the session At the end of this session you will be able to:
• Define the term inventory
• List the different types of inventory
• Describe the main functions of inventory
• Describe the costs that are relevant for inventory management
• Describe the A-B-C approach and explain how it is useful
• Describe the basic EOQ model and its assumptions and solve typical
problems
• Describe the economic production quantity model and solve typical problems
• Describe the quantity discount model and solve typical problems
• Describe reorder point models and solve typical problems
• Explain periodic and continuous review systems
• Describe situations in which the fixed-order interval model is appropriate and
solve typical problems
• Describe situations in which the single-period model is appropriate, and
solve typical problems
• Solve the newsvendor problem for perishable inventory
Readings Chapter 13
Readings Newsvendor Problem (will be distributed by the instructor)
Case Title/ Number None
Pedagogy Lecture, class discussions, solved numerical examples in class

Session No. 13 Inventory Management - II

Objective of the session At the end of this session you will be able to:
• Define the term inventory
• List the different types of inventory
• Describe the main functions of inventory
• Describe the costs that are relevant for inventory management
• Describe the A-B-C approach and explain how it is useful
• Describe the basic EOQ model and its assumptions and solve typical
problems
• Describe the economic production quantity model and solve typical problems
• Describe the quantity discount model and solve typical problems
• Describe reorder point models and solve typical problems
• Explain periodic and continuous review systems
• Describe situations in which the fixed-order interval model is appropriate and
solve typical problems
• Describe situations in which the single-period model is appropriate, and
solve typical problems
• Solve the newsvendor problem for perishable inventory
Readings Chapter 13
Readings Newsvendor Problem (will be distributed by the instructor)
Case Title/ Number None
Pedagogy Lecture, class discussions, solved numerical examples in class

Session No 14 Student Presentation - I

Objective of the session To facilitate team presentation by the students
Readings N/A
Readings N/A
Case Title/ Number N/A
Pedagogy Presentation by the group

Session No. 15 Practice Session - I

Objective of the session At the end of this session you will be able to:
• Revise the concepts learnt on class with the instructor
• Solve a set of numerical examples as a part of concept application
Readings N/A
Readings A set of numerical examples and brief cases will be provided to the students, which
they will solve in class. The instructor will facilitate the process, rather than directly
solving the problems / cases himself / herself.
Case Title/ Number N/A
Pedagogy Class discussions & solving numerical examples in class
Session No. 16 Scheduling

Objective of the session At the end of this session you will be able to:
• Explain what scheduling involves and the importance of good scheduling.
• Compare product and service scheduling hierarchies.
• Describe scheduling needs in high-volume systems.
• Describe scheduling needs in intermediate-volume systems.
• Describe scheduling needs in job shops.
• Use and interpret Gantt charts.
• Use the assignment method for loading.
• Give examples of commonly used priority rules.
• Discuss the theory of constraints and that approach to scheduling.
• Summarize some of the unique problems encountered in service systems,
and describe some of the approaches used for scheduling service systems.
Readings Chapter 16
Readings N/A
Case Title/ Number Hi-Ho, Yo-Yo, Inc. (Page 728 in the Stevenson textbook)
Pedagogy Lecture, class discussions, case discussion & solved numerical examples in class

Session No. 17 Management of Waiting Lines - I

Objective of the session At the end of this session you will be able to:
• What imbalance does the existence of a waiting line reveal?
 • What causes waiting lines to form, and why is it impossible to eliminate them
completely?
• Understand the characteristics of waiting lines
• Understand and calculate infinite and finite source queuing models
Readings Chapter 18
Readings N/A
Case Title/ Number N/A
Pedagogy Lecture, class discussions, case discussion & solved numerical examples in class

Session No. 18 Management of Waiting Lines - II

Objective of the session At the end of this session you will be able to:
• What imbalance does the existence of a waiting line reveal?
• What causes waiting lines to form, and why is it impossible to eliminate them
completely?
• Understand the characteristics of waiting lines
• Understand and calculate infinite and finite source queuing models
Readings Chapter 18
Readings N/A
Case Title/ Number Big Bank (Page 830 in the Stevenson textbook)
Pedagogy Lecture, class discussions, case discussion & solved numerical examples in class

Session No. 19 Project Management - I

Objective of the session At the end of this session you will be able to:
• Describe the project life cycle
• Discuss the behavioral aspects of projects in terms of project personnel and
the project manager
• Explain the nature and importance of a work breakdown structure in project
management
• Name the six key decisions in project management
• Give a general description of PERT/CPM techniques
• Construct simple network diagrams
• Analyze networks with deterministic times
• Analyze networks with probabilistic times
• Describe activity ‘crashing’ and solve typical problems
Readings Chapter 17
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions & solved numerical examples in class
Session No. 20 Project Management - II

Objective of the session At the end of this session you will be able to:
• Describe the project life cycle
• Discuss the behavioral aspects of projects in terms of project personnel and
the project manager
• Explain the nature and importance of a work breakdown structure in project
management
• Name the six key decisions in project management
• Give a general description of PERT/CPM techniques
• Construct simple network diagrams
• Analyze networks with deterministic times
• Analyze networks with probabilistic times
• Describe activity ‘crashing’ and solve typical problems
Readings Chapter 17
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions & solved numerical examples in class

Session No. 21 Demand Forecasting - I

Objective of the session At the end of this session you will be able to:
• List features common to all forecasts
• Explain why forecasts are generally wrong
• List elements of a good forecast
• Outline the steps in the forecasting process
• Summarize forecast errors and use summaries to make decisions
• Describe four qualitative forecasting techniques
• Use a naïve method to make a forecast
• Prepare a moving average forecast
• Prepare a weighted-average forecast
• Prepare an exponential smoothing forecast
• Prepare a linear trend forecast
• Prepare a trend-adjusted exponential smoothing forecast
• Compute and use seasonal relatives
• Compute and use regression and correlation coefficients
• Construct control charts and use them to monitor forecast errors
• Describe the key factors and trade-offs to consider when choosing a
forecasting technique
Readings Chapter 03
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions, solved numerical examples in class

Session No. 22 Demand Forecasting - II

Objective of the session At the end of this session you will be able to:
• List features common to all forecasts
• Explain why forecasts are generally wrong
• List elements of a good forecast
• Outline the steps in the forecasting process
• Summarize forecast errors and use summaries to make decisions
• Describe four qualitative forecasting techniques
• Use a naïve method to make a forecast
• Prepare a moving average forecast
• Prepare a weighted-average forecast
• Prepare an exponential smoothing forecast
• Prepare a linear trend forecast
• Prepare a trend-adjusted exponential smoothing forecast
• Compute and use seasonal relatives
• Compute and use regression and correlation coefficients
• Construct control charts and use them to monitor forecast errors
• Describe the key factors and trade-offs to consider when choosing a
forecasting technique
Readings Chapter 03
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions, solved numerical examples in class

Session No. 23 Aggregate Planning

Objective of the session At the end of this session you will be able to:
• Explain what aggregate planning is and how it is useful.
• Identify the variables decision makers have to work with in aggregate
planning.
• Describe some of the strategies that can be used for meeting uneven
demand.
• Describe some of the graphical and quantitative techniques planners use.
• Prepare aggregate plans and compute their costs.
• Discuss aggregate planning in services.
• Disaggregate an aggregate plan.
• Describe the master scheduling process and explain its importance.
Readings Chapter 11
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions & solved numerical examples in class

Session No. 24 Materials Requirement Planning & ERP - I

Objective of the session At the end of this session you will be able to:
• Describe the conditions under which MRP is most appropriate.
• Describe the inputs, outputs, and nature of MRP processing.
• Explain how requirements in a master production schedule are translated
into material requirements for lower-level items.
• Discuss the benefits and requirements of MRP.
• Describe some of the difficulties users have encountered with MRP.
• Describe MRP II and its benefits.
• Explain how an MRP system is useful in capacity requirements planning.
• Discuss ERP, what it provides, and its hidden costs.
Readings Chapter 12
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions & solved numerical examples in class

Session No. 25 Materials Requirement Planning & ERP - II

Objective of the session At the end of this session you will be able to:
• Describe the conditions under which MRP is most appropriate.
• Describe the inputs, outputs, and nature of MRP processing.
• Explain how requirements in a master production schedule are translated
into material requirements for lower-level items.
• Discuss the benefits and requirements of MRP.
• Describe some of the difficulties users have encountered with MRP.
• Describe MRP II and its benefits.
• Explain how an MRP system is useful in capacity requirements planning.
• Discuss ERP, what it provides, and its hidden costs.
Readings Chapter 12
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions & solved numerical examples in class

Session No. 26 JIT & Lean Operations

Objective of the session At the end of this session you will be able to:
 • Explain the terms lean operations and JIT
• Describe the main characteristics of lean systems
• List the five principles of the way lean system function
• List some of the benefits and some of the risks of lean operations
• Discuss the Toyota Production System (TPS)
• List the three goals of a lean system and explain its importance of each
• List the eight wastes according to lean philosophy
• Identify and briefly discuss the four building blocks of a lean production
system
• Describe key lean improvement tools
• Outline considerations for successful conversion from a traditional system to
a lean system
• Describe some of the obstacles to lean success
Readings Chapters 14
Readings None
Case Title/ Number None
Pedagogy Lecture, class discussions & solved numerical examples in class

Session No. 27 Overview of Supply Chain Management

Objective of the session At the end of this session you will be able to:
• Understand the key aspects of supply chain management
• List, and briefly explain, current trends in supply chain management
• Outline the benefits and risks related to outsourcing
• Explain what the main supply chain risks are, and what businesses can do to
minimize those risks
• Describe some of the complexities related to global supply chains
• Briefly describe the ethical issues in supply chains and the key steps
companies can take to avoid ethical problems
• Describe the three concerns of small businesses related to the supply chain
and suggest ways to manage those concerns
• List several strategic, tactical, and operational responsibilities related to
managing the supply chain
• Discuss procurement in terms of the purchasing interfaces, the purchasing
cycle, ethics, and centralized versus decentralized decision making
• Briefly describe the key aspects of supplier management
 • Discuss the logistics aspects of supply chain management, including RFID
technology
Readings Chapter S20
Readings None
Case Title/ Number None
Pedagogy Lecture and in-class discussions

Session No 28 Student Presentation – II

Objective of the session To facilitate team presentation by the students

Readings N/A
Readings N/A
Case Title/ Number N/A
Pedagogy Presentation by the group

Session No. 29 Practice Session - III

Objective of the session At the end of this session you will be able to:
• Revise the concepts learnt on class with the instructor
• Solve a set of numerical examples as a part of concept application
Readings N/A
Readings A set of numerical examples and brief cases will be provided to the students, which
they will solve in class. The instructor will facilitate the process, rather than directly
solving the problems / cases himself / herself.
Case Title/ Number N/A
Pedagogy Class discussions & solving numerical examples in class

Session No. 30 Course Review

Objective of the session At the end of this session you will be able to:
• Clear any doubts you had regarding the course
• Ask the instructor any questions regarding any particular topic(s) in the
course
Readings N/A
Readings N/A
Case Title/ Number N/A
Pedagogy In-class discussions and doubt clearing session

DELIVERY DEADLINES FOR PROJECTS/ASSIGNMENTS

Deliverables Due (Session #)

Midterm Midterm week
 Presentation # 1 & #2 14 & 28
Final Report 29
Final Examination Final examination schedule

The final examination will be held according to the examination schedule provided by the
University